Is a Bft franchisee required to obtain independent legal advice regarding employment matters?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee, not Franchisor, shall be considered the employer of all employees and the principal of all independent contractors of the Studio. It is the sole responsibility of Franchisee to hire, discipline, discharge and establish wages, hours, benefits, employment policies and other terms and conditions of employment for its employees and independent contractors. Franchisee is solely responsible for obtaining its own independent legal advice regarding the employment of employees and retention of independent contractors, and for complying with any and all Applicable Laws pertaining thereto. Franchisor shall have no responsibility for the terms and conditions of Franchisee's relationship with Franchisee's employees and/or independent contractors. Franchisee shall engage in no discriminatory employment practices and shall in every way comply with all Applicable Laws, including all wage-hour, civil rights, immigration, employee safety and related employment and payroll related laws. Franchisee shall make all necessary filings with, and pay all taxes and fees due to, the Internal Revenue Service and all other federal, state and local governmental agencies or entities to which filings and payments are required.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, franchisees are responsible for obtaining their own independent legal counsel regarding employment matters. Bft franchisees are considered the employer of their studio's employees and the principal of all independent contractors. Therefore, franchisees are responsible for hiring, disciplining, discharging, and establishing the wages, hours, benefits, employment policies, and other terms and conditions of employment for their employees and independent contractors.
This means that Bft franchisees must handle all aspects of employment law compliance themselves. This includes staying up-to-date with all applicable laws and regulations, and ensuring that their employment practices are compliant. Bft has no responsibility for the terms and conditions of the franchisee's relationship with their employees and/or independent contractors.
Bft franchisees must also ensure that they do not engage in any discriminatory employment practices and comply with all applicable laws, including wage-hour, civil rights, immigration, employee safety, and related employment and payroll-related laws. Franchisees are also responsible for making all necessary filings with, and paying all taxes and fees due to, the Internal Revenue Service and all other federal, state, and local governmental agencies or entities to which filings and payments are required. This further emphasizes the importance of seeking legal counsel to ensure full compliance and avoid potential legal issues.